The Nigerian Electricity Regulatory Commission (NERC) has listed proper project management and prudent public sector investment as critical success factors for total overhaul of the power sector in the country.
Dr Sam Amadi, Chairman/Chief Executive of NERC, commenting on the success factors, said: “When our capacity of project management improves, starting from who gets the contract, then the country would have started the journey of the rebirth of Nigeria.
“If we had been efficient and reduced corruption more since the beginning of the power sector reform, we would have attained 6,000 megawatts now.
“More power was expected from the various projects like the National Integrated Power Project (NIPP); however, the failure of some of these projects arose from the historic problem of budgeting in Nigeria. The new government can improve project execution by changing the budgetting system. That way, important projects are fully funded to avoid lapses.”
Amadi advised the government to continue to make critical investments in the sector, particularly in transmission services.
“These investments should be regulated by the regulator to ensure prudence and relevance.
“If we invest prudently and strategically, Nigeria will accomplish more with less. But if investments are not regulated and are dictated by political or bureaucratic considerations, then there will be little value for money.
“Presently, power generation nationally has been fluctuating between 3,600MW-3,800MW,” he added stating that during the campaigns, power supply dropped to its lowest due to vandalism.
He urged the new government to continue to maintain the regulatory independence of NERC in addition to also providing more of policy support on renewables and gas supply, especially on areas that require more policy clarity.
Amadi pointed out that the present team of seven commissioners inherited a sector that lacked credibility and they have done well by restoring regulatory credibility.